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Friday, January 15, 1999

Dabon International eyes 15 per cent local cheese market share 

Our Corporate Bureau  
Mumbai, Jan 14: Dabon International Ltd, a 50:50 joint venture between Dabur India and Bongrain of France, plans to break even in three years. Dabon, which has launched `LeBon cheese', has already garnered a market share of around 10-15 per cent in Delhi and is aiming at achieving a turnover of Rs 15-20 crore in the first year of operations, according to Dabon International chief executive officer and director PK Gupta.

Gupta said LeBon hopes to replicate its success in Delhi nation-wide by garnering 10-15 per cent share of the organised cheese market over one year.

The organised cheese market, say industry observers, is dominated by brands Amul and Britannia. The latter is said to have garnered a 35 per cent market share while Amul is ahead at 50 per cent. The size of the Indian cheese market is about 8,000 tonnes per annum of which the organised market accounts for 6,500 tonnes. The value of the entire cheese market is estimated to be Rs 200 crore.

Dabon International launched its `LeBon' brand of cheese in Delhi in September last year and rolled out the product in the western region as part of its national launch plan. The Delhi market size, in terms of volumes, is estimated to be 1,500 tonnes, while that of the Mumbai is 1,800 tonnes.

In the first year itself, Dabon has targeted volumes of 600 tonnes subsequent to the national launch which will mark an entry into the top 25 to 30 towns. LeBon has been strategically priced at Rs 35 for a 200 gm glass jar in the plain form which is comparatively cheaper than Amul's Rs 40 for 200 gm and Britannia's Rs 42 for the same size. The 400 gm tin pack is priced at Rs 85.

LeBon comes in new flavours of herbs & garlic, curry capsicum and black pepper besides in regular plain form. It has been positioned as an "Any time bite" to promote it as a snack food.

Dabur has invested over Rs 20 crore in the joint venture company. Besides, it has committed over Rs 5 million in product development. Dabon International will also be exporting the cheese to Nepal and Middle East. The company would be eventually launching a range of dairy based products like flavoured milk.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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